Citibank Invests in Founders National Bank.

LOS ANGELES--(BUSINESS WIRE)--Aug. 21, 1997--Founders National Bank of Los Angeles announced today that Citibank has made a $250,000 investment in Founders, the largest African American owned commercial bank west of the Mississippi.

Citibank's purchase of preferred stock will assist Founders to increase lending in predominantly minority neighborhoods of Los Angeles. Founders Bank, headquartered at 3910 West Martin Luther King, Jr. Boulevard, Los Angeles, has four branches primarily in South Central Los Angeles. Citibank provides investments and loans to community institutions such as Founders Bank to further local community economic development.

"Citibank's investment will allow us to continue to build the critical infrastructure requisite to further enhance the bank's lending and deposit programs. Specifically, it will provide the seed capital necessary to finalize the implementation of the bank's housing related lending programs in partnership with Citibank," said Carlton J. Jenkins, president of Founders.

"Additionally, this new capital when melded with the bank's existing capital base will continue to ensure the bank's ability to maintain its commitment to attempt to provide credit to those 'credit challenged' consumers and small businesses located in its primary market areas who often come to our bank as their last alternative."

"Citibank invests in a broad spectrum of community development opportunities," says Frits Seegers, president of Citibank California.

"In our role as a responsible corporate citizen, we have established partnerships with many community institutions such as Founders Bank, which have the capacity to leverage our investment to benefit the local community. We help by investing in key community institutions and are proud to join with Founders to serve South Central Los Angeles. This investment with Founders will increase access to capital for consumers and small businesses."

Founders National Bank through its four branch network located in South Central Los Angeles and Compton, California serves approximately 20,000 customers. The bank has approximately $105 million in assets and employs 75 people.

Citibank California has 80 branches in 68 California communities. There are some 400 Citibank branches located in eight states and the District of Columbia. Citibank is a subsidiary of Citicorp, a global financial services organization, with over $300 billion is assets and 89,000 employees serving communities, businesses, governments and individuals in 98 countries around the world.

CONTACT: Founders

Carlton J. Jenkins, 213/290-4848

or

Citibank

Tonia Freeman, 415/658-4554